Government

Human Capital And The Indian Software Industry

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Executive Summary

The importance of human capital - skilled and creative workers - to a "High-tech" industry is routinely acknowledged but often public policy discussions tend to focus on more trendy prescriptions such technology parks, venture capital, incubators and university industry centers. Software relies intensively upon human capital, perhaps more so than any other high-tech industry. Software services, the engine of the Indian software sector, is arguably even more human capital intensive than software products. Thus, few would question the role of human capital stocks in the rise of the Indian software industry. Indeed, one might argue that the plenitude of engineers has created a comparative advantage for India in software service exports.

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